Press Release
Statement from the Freeport Licensee Association (FLA) on the Government vs. GBPA Arbitration
The Freeport Licensee Association (FLA) notes the issuance of the Partial Award in the arbitration between the Government of The Bahamas and the Grand Bahama Port Authority (GBPA) concerning the Hawksbill Creek Agreement (HCA).
The Tribunal’s ruling provides important clarification regarding the operation of the HCA, including the framework governing administrative expense payments and the respective roles of the Government and the GBPA in the Port Area. The Tribunal dismissed the Government’s $357 million reimbursement claim under Clause 1(5)(d) and confirmed that the annual payment mechanism established in 1994 remains operative through a review process going forward.
As licensees who have invested, built businesses, created employment, and committed our futures under the HCA framework, we welcome the opportunity this ruling brings. Predictability, transparency, and stability are essential to maintaining investor confidence and supporting sustainable economic growth in Freeport and it is critical both the GBPA and The Government remain committed to these principles in earnest to move forward.
We also acknowledge the Tribunal’s findings regarding the environmental by-law process and recognize the importance of timely regulatory development in supporting commerce, environmental stewardship, and long-term planning. Effective and responsive governance is critical to ensuring Freeport is competitive and resilient.
As citizens of The Bahamas, we are mindful that disputes of this magnitude inevitably involve the use of public and private resources. While arbitration is an appropriate and legitimate mechanism for resolving complex legal matters, this experience underscores the value of early and consistent dialogue, structured consultation, and inclusive stakeholder engagement wherever possible and, most importantly, a shared commitment to resolution so that our island no longer experiences the uncertainty that we have faced for too long. Freeport operates under a unique legal and economic framework. Broader engagement with licensees — those who live, work, invest, and operate daily under the HCA — can contribute meaningfully to policy development and implementation. Expanding consultation strengthens governance, promotes transparency, and helps ensure that legal principles and practical realities remain aligned.
Now that the Tribunal has clarified key issues, we respectfully encourage both parties to pursue resolution of the outstanding matters in a manner that avoids unnecessary escalation. Genuine, determined collaboration and structured negotiation would best serve the interests of the business community, investor confidence, and the Bahamian public.
This ruling presents an opportunity to turn clarity into action. We once again call for genuine collaboration between the Government and the GBPA to help Freeport and Grand Bahama reach our full economic potential. Our island has demonstrated extraordinary resilience and remains poised for growth. What is needed now is stability, cooperation, and a shared commitment to progress.
The Freeport Licensee Association is solely focused on the success of Freeport, and in turn Grand Bahama, and remains steadfast in its mission:
• To educate and inform licensees and the public on the rights and obligations under the Hawksbill Creek Agreement;
• To advocate for fair, transparent governance; and
• To encourage constructive collaboration among all stakeholders for the benefit of Freeport and The Bahamas as a whole.
The FLA stands ready to engage constructively in that process.
Freeport Licensee Association
